Which of the following statements is TRUE?
A)External auditors are usually specifically trained to detect fraud.
B)Audits of books and records rarely discover frauds.
C)Less than 5 percent of all frauds are detected by auditors.
D)The presence of auditors provides a major deterrent effect.

Question

Quizplus · Accepted Answer

The presence of auditors provides a major deterrent effect. While external auditors may not be specifically trained to detect fraud, their presence can make it more difficult for fraud to occur and increase the likelihood of detection. While it is true that audits may not always discover frauds, it is not accurate to say that they rarely do; the likelihood of detection depends on various factors such as the nature of the fraud and the quality of the audit. Additionally, it is difficult to accurately estimate the percentage of frauds that are detected by auditors, so statement C is also not necessarily true.

Which of the Following Statements Is TRUE